Equity benchmarks opened higher on Tuesday, extending their winning streak for a fifth consecutive session, but pared early gains to trade largely flat as investors awaited the outcome of key US-China talks.
At 9:17 a.m., the BSE Sensex was up 28.49 points or 0.03% at 82,473.70, while the NSE Nifty rose 21.15 points or 0.08% to 25,124.35.
Technology, metal, and media stocks led sectoral gains, while banking counters witnessed mild selling pressure amid profit booking. Broader markets outperformed, with both midcap and smallcap indices rising up to 0.5%, reflecting broader participation.
Akshay Chinchalkar, Head of Research at Axis Securities, said Monday’s performance was a continuation of Friday’s breakout. “Whether the index is breaking out of a pennant or a rectangle pattern, the implication is bullish with a target of 25,800. The 25,200 level is crucial on the upside, and as long as the index holds above 24,800, the momentum remains with the bulls,” he said, adding that the outcome of US-China talks could be the next major trigger.
Vikram Kasat, Head of Advisory at PL Capital, said while efforts to ease tensions between the US and China are welcome, a comprehensive deal could take longer to materialise. “Investors are also eyeing progress on agreements with other trading partners,” he added.
Analysts noted that with valuations stretched after the recent rally, selective profit booking may be prudent to guard against potential volatility.
Globally, Wall Street ended marginally higher on Monday, supported by gains in Amazon and Alphabet, as markets closely monitored developments in US-China negotiations. Asian shares also edged up on hopes of a positive outcome.
On the institutional front, foreign institutional investors (FIIs) continued to support the market, buying equities worth ₹1,992 crore on Monday. Domestic institutional investors (DIIs) were net buyers for the 15th straight session, purchasing stocks worth ₹3,503 crore.
— IANS
